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Unformatted text preview: AEM 220 – Intro to Business Management 22/02/2008 10:13:00 ← The for Ps: Place - logistics Place – where we offer our product ← ← The Supply Chain • Suppliers’ plans (begins the channel of distribution) manufacturers wholesalers retailers consumers • Not every supply chain will look like this • Depends on the suppliers, the market, and the value of the product to the customer Distribution Effect on Your Food Dollar • Farmer – gets to see about ¼ of every dollar spent on food for us • Labor • Profits • Advertising • Transportation • Packaging • Building Costs (warehouses, stores, etc.) • Etc. ← ← Utilities Created by Intermediaries • Form utility – taking raw materials and changing their form so that they before useful products • Time utility – making products available when they are needed. i.e. restaurants are open at dinner time • Place utility – making products available where they are needed • Possession utility – doing whatever is necessary to transfer ownership from one party to another, including providing credit; making it easy for us to acquire the product • Information utility – opening two-way flows of information between marketing participants • Service utility – the provision of fast, friendly service during and after the sale, including teaching customers how to best use products over time ← ← Wholesalers • Provide a sales force to sell the goods to retailers and other buyers • Communicate manufacturers’ advertising deals and plans • Maintain inventory, thus reducing the level of the inventory suppliers have to carry • Arrange or undertake transportation • Provide capital by paying cash or quick payments for goods • Provide suppliers with market information they can’t afford or can’t obtain...
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